Ads go live on AI Overviews
Ads are now displayed in AI Overviews, but only when there’s a commercial intent behind the query, Brendon Kraham, vp of search & commerce, Google, told ADWEEK.
For instance, a query on removing grass stains from jeans might feature shopping or traditional text ads placed above or below the AI-generated answer, all labeled as sponsored.
Google announced it was testing this ad format at GML last year. Although Kraham didn’t share how ads are performing, he noted that ads in AI Overviews rely on Google’s standard auction process, triggered by relevant keywords.
Google has been pitching these ads to agencies, explaining that changes in keyword and search term matching allow ads in AI Overviews to be triggered not only by user searches but also by the content generated within the AI Overview itself.
If a search term appears less directly related, but the AI Overview discusses relevant keywords that advertisers are bidding on, their ad could still be featured, according to Andy Goodwin, head of paid search at digital media agency Brainlabs. The agency has yet to test ads in AI Overview.
Ads will be available through broad match and Performance Max, all operating under a single auction system, maintaining similar cost-per-click (CPC) rates to traditional search ad slots, added Goodwin.
AI-organized search results
Google is also introducing AI-organized search results in the U.S., powered by its Gemini model. This is outside of the AI-overview experience.
This update will offer a more curated experience for topics without a single definitive answer—such as recipe ideas or meal planning—by grouping results into categories. The new layout will help people navigate large amounts of information more easily by offering subcategories, such as ingredients, as they scroll. Sponsored links will continue to appear at the top of these pages, with the initial rollout focusing on recipes and dining.